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Sunbelt Goat Producers Cooperative, Inc. "A New Generation Cooperative Owned and Operated by Phone:
FREQUENTLY ASKED QUESTIONS: 1. What is a new generation cooperative? A special type of producer cooperative called a "New Generation Cooperative" (NGC) or a "closed cooperative" combines solutions to both the financing and operations questions. Producers raise an initial portion of the plant's cost through stock sales. Each share of stock provides the right and the obligation to market a production unit (goat) through the Co-op. The remaining capital is raised through debt financing. Operation of the Co-op remains with the producer/owner. The basic concept of this new type of cooperative is that producers capture profits that occur beyond the farm gate by owning and controlling the local businesses that are positioned to earn those profits. The motivation of new generation cooperatives is more offensive than defensive ---take control of your own destiny and be proactive rather than reactive. The main emphasis in cooperatives of this type has been on value-added processing, niche marketing, and producers/members viewing themselves as producing a finished food product rather than a raw commodity. 2. Who can be a member? Membership is derived from the goat producers. Any 3. Can goat producers from other states join the Co-op? No. Unfortunately, the Co-op can only accept members from 4. How much does it cost to join the Co-op? There is a one-time membership fee is $20.00. 5. What will the equity stock cost and how much stock can I buy? The equity stock now costs $12.50 per share. One entity (individual, group, etc.) cannot purchase more than 20% of the total stock. This is 6. Can I sell my stock in the future? Yes, with the approval of the Board of Directors. 7. Can I buy more stock at a later time? Yes, a person can buy stock from the Co-op whenever shares are available or from members selling their shares. When members wish to sell their shares for some reason, these shares will be available through the Cooperative. 8. What if I can't deliver goats to meet my stock requirements? Make the Cooperative aware of your situation. 9. How do I know when to bring goats to the Co-op? A communication line must be maintained between the Co-op and the members so that timely delivery of animals is maintained. The Co-op management will coordinate delivery of animals with producers. 10. What if I have more goats than I have stock? Other members may have fewer animals than they have stock and this will be communicated through the Cooperative. The Cooperative also has the right to do 15% of its business outside the shareholders; so, if you have 10 shares and 15 goats, the Cooperative has the right, but not the obligation, to purchase your additional 5 goats. You would not receive stock dividends on the additional goats. 11. How do I sell my goats to the Co-op? Delivery schedules will be arranged with Co-op members. When animals are delivered they will be weighed. Members will be paid for their animals upon delivery. 12. What price will I receive for my goats? The USDA goat grading system is used. The Co-op pays $1.00 per pound live weight for the standard goat as defined in Section 5 of the Uniform Delivery and Marketing Agreement. 13. How will I be paid? You will be paid upon delivery. Dividend checks will be paid to member participants when the Co-op makes a profit. 14. What kind of goats will the Co-op buy? The consumer market will ultimately decide what type of goats the Cooperative will purchase. The Co-op plans to find markets for all types of goats. At present the Co-op is purchasing goats as defined in Section 5 of the Uniform Delivery and Marketing Agreement. 15. Can I buy goats and then sell them to the Co-op? Yes, for every share of stock you own, you have the right and the obligation to deliver one goat. This can be a raised goat or a purchased goat. However, if it is a purchased goat, you are still liable for any drug residues in the carcass (dewormers, medication, etc.) 16. Can I buy goats from the Co-op? Anyone can purchase slaughtered goats from the Co-op. The Co-op will not sell live animals for breeding. 17. Can the Co-op help me find breeding stock? Yes! The Co-op can really be helpful here. Good record-keeping will allow the Co-op to refer ranchers to sources of good stock. 18. What else can the Co-op do for me? The Cooperative will assist in market development for goats in 19. When will the Co-op begin purchasing and harvesting goats? The Co-op began purchasing and harvesting goats in July 2002. |